AirTran projects third-quarter loss

Low-cost carrier blames Florida hurricanes, fuel prices

By

MattAndrejczak

SAN FRANCISCO (CBS.MW) -- AirTran Holdings, parent of AirTran Airways, said Tuesday it is projecting a third-quarter loss due to the two hurricanes in Florida, record-high fuel prices and a weak revenue environment for airlines.

The low-cost carrier did not estimate how much it expects to lose. AirTran is expected to earn 6 cents a share on revenue of $264 million, according to 13 analysts polled by Thomson First Call.

"The disruption of traffic over the busy Labor Day holiday generated immediate revenue loss, and continuing weather alerts are impacting near-term future bookings," AirTran said in a statement late Tuesday.

A third hurricane, Ivan, is approaching Florida and could have an impact as soon as this weekend.

Due to Hurricane Frances, AirTran
AAI, +0.00%
cancelled 352 flights over the Labor Day weekend. It resumed service Monday afternoon from airports in Ft. Lauderdale, Fort Myers, Jacksonville, Miami, Orlando, Tampa and West Palm Beach.

The hurricane affected 51 percent of its normal traffic flows, the carrier said. In addition, AirTran reported that its Orlando headquarters and aircraft hangar there suffered damage, harming operations.

The airline's hub is at Hartsfield-Jackson Atlanta International Airport, the world's busiest airport by passenger volume, where it is the second largest carrier behind Delta Air Lines.

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